China’s C.Bank ‘close’ to launch official digital currency

13 August 2019 05:25 PM

Mubasher: China’s central bank is nearing to issue its own digital currency, an official at the institution said.

Researchers at the People’s Bank of China (PBoC) have been working intensively since last year to develop systems, the central bank’s payments department deputy director Mu Changchun was quoted by Bloomberg as saying at an event hosted by the China Finance 40 Forum (CF40).

The PBoC’s cryptocurrency is “close to being out,” Mu said, without specifying a timing. The planned digital currency would also boost the circulation of the Chinese yuan (CNY).

The announced plan, which was the outcome of five years of research work, came at the time of mounting concerns among central banks worldwide regarding Facebook’s planned cryptocurrency Libra, amidst calls for the digital asset to be placed under oversight to prevent potential foreign exchange risks and maintain the authority of monetary policy.

Contrary to the decentralised blockchain-based assets, the PBoC’s digital currency, which could be traced, aims to provide more control over the Chinese financial systems.

Individuals and entities would download a mobile wallet and exchange their yuan for the digital currency, which would be used to make and receive payments, Bloomberg said, citing patents registered by the PBoC.